Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: a. Risk-free asset earning 11% per year. p. Risky asset with expected return of 35% per year and standard deviation of 42%. If you construct a portfolio with a standard deviation of 30%, what is its expected rate of return? (Do not round your intermediate calculations. Round your answer to 1 decimal place.) Expected return on portfolio %
Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: a. Risk-free asset earning 11% per year. p. Risky asset with expected return of 35% per year and standard deviation of 42%. If you construct a portfolio with a standard deviation of 30%, what is its expected rate of return? (Do not round your intermediate calculations. Round your answer to 1 decimal place.) Expected return on portfolio %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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